The board of directors of Leoch International Technology Limited announced that on 15 April 2024, the Company entered into a non-legally binding memorandum of agreement with GRST Holdings Limited. To the best of the Board's knowledge, information and belief, having made all reasonable enquiries, GRST and its ultimate beneficial owners are independent third parties. According to the Agreement, the Group agree to harness their respective strengths and to explore potential collaboration for expansion, includes but not limited to, the following areas: Joint development on business or investment projects; Exchange of technical expertise and best practices; Share of business resources, market intelligence and industry trends; Joint initiatives to foster industry engagement and knowledge exchange; Leverage the influence of industry awards to expand market presence; Other mutually agreed areas of collaboration.

Non-legally binding effect. Save for certain clauses regarding, among others, confidentiality, dispute resolution and governing law and jurisdiction, the Agreement is not legally binding on the Group and the Partner. The party to the Agreement shall enter into formal written agreements to set out the terms and conditions of the potential collaboration between the Company and the Partner.

The Group specializes in the production and sales of batteries for the global market. In recent years, on the basis of the business foundation in lead-acid battery, the Group has actively focused on developing lithium battery business and regarded lithium battery business as the main growth point in the future. Through the collaboration, both parties will capitalize on their respective strategic advantages to strive for stronger synergy.

The Group plans to apply GRST's water-based technologies in its production sites to gain enhanced cost advantages and market competitiveness, facilitating global expansion of lithium battery businesses. Besides, GRST will leverage the Group's extensive global sales and production network to achieve cost and capacity advantages while promoting its products in various markets. The Group will also build upon the GRST 's achievement of winning "The Earthshot Prize" to collaboratively explore and capitalize on market opportunities and relevant incentives brought by this award in various countries, and to jointly develop and sell co-manufactured products in areas such as energy storage and new energy vehicles.